On June 2, 2003, the United States District Court for the District of Columbia entered agreed permanent injunctions against Environmental Solutions Worldwide, Inc. (ESWW) and its former chairman and president, Bengt Odner (Odner). On August 13, 2002, the Securities and Exchange Commission filed a complaint against ESWW and other persons, alleging that they perpetrated a massive stock fraud in the NASDAQ Over-the-Counter securities market. In connection with the scheme, the complaint alleged that ESWW illegally issued 15 million shares of its stock in a sham private offering and "pumped" the price of its stock by materially misrepresenting test results of its catalytic converter prototype in press releases and other public statements. The complaint also alleged that in June 2000, Odner, of the United Kingdom, repeated several of the prior misrepresentations of the test results in a promotional interview published in an investment publication and posted on ESWW's Internet website.

Without admitting or denying the Commission's allegations, ESWW consented to a final judgment permanently enjoining it from future violations of Sections 5(a) and 5(c) of the Securities Act of 1933 and Sections 10(b), 13(a), 13(b)(2)(a), and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 12b-20, 13a-1, and 13b2-1 thereunder, and Odner consented to a final judgment permanently enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Odner was also ordered to pay a $25,000 civil penalty.